Open-market purchases by the Fed make the money supply
a. increase, which makes the value of money increase.
b. increase, which makes the value of money decrease.
c. decrease, which makes the value of money decrease.
d. decrease, which makes the value of money increase.
b
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Sue consumes only sandwiches and soda and is at her best affordable point. The price of a sandwich falls. The substitution effect is that Sue substitutes ________ for ________. The income effect is that Sue ________
A) sandwiches; soda; buys less of both goods B) soda; sandwiches; buys more soda and fewer sandwiches C) sandwiches; soda; buys more of both goods D) soda; sandwiches; buys less soda and more sandwiches
Expected value is defined as
a. the profit on a fair bet. b. the most likely outcome of a given experiment. c. the outcome that will occur on average for a given experiment. d. the relative frequency with which an event will occur.
In a two-country world, an increase in foreign input prices, ceteris paribus,
A) shifts the SRAS curve leftward, causing the price level to increase. B) shifts the SRAS curve leftward, causing the price level to decrease. C) shifts the SRAS curve rightward, causing the price level to increase. D) shifts the SRAS curve rightward, causing the price level to decrease. E) does not affect the SRAS curve or the price level.
Which of the following will definitely occur when there is an increase in demand for and a decrease in supply of milk?
A. a decrease in equilibrium price B. a decrease in equilibrium quantity C. an increase in equilibrium quantity D. an increase in equilibrium price